|10 year government bond yield||0.94%|
|30 year fixed rate mortgage||2.78%|
Stocks are higher this morning on strong overseas economic data. Bonds and MBS are down small.
This week contains a lot of Fed-speak as well as the FOMC minutes on Wednesday. On Friday, we will get the jobs report. On Tuesday, the GA Senate runoff elections will happen, and that could be market-moving as well. Gridlock will be more positive for the markets than an aggressively leftist one will be.
Joe Biden is setting up for an aggressive regulatory state, at least on the environmental side. I have to imagine he will do the same thing on the financial side.
The decrease in interest rates has pushed up housing prices and is making homes less affordable, according to data from ATTOM. “Owning a home in the United States slipped into the unaffordable zone for average workers across the nation in the fourth quarter as the numbers continued a year-long slide in the wrong direction,” said Todd Teta, chief product officer with ATTOM Data Solutions. “The latest housing market data shows the average worker unable to meet the 28 percent affordability guideline used by lenders. That’s happened as home prices have continued rising throughout 2020 and the housing market has remained remarkably resilient in the face of the brutal economic fallout from the coronavirus pandemic. The future remains wholly uncertain and affordability could swing back into positive territory. But for now, things are going in the wrong direction for buyers.”
New York State bans evictions. It also prevents lenders from foreclosing on landlords who own 10 or fewer units.